Explanation : 

Money Multiplier

The money multiplier is a concept that describes the maximum amount of money that banks can theoretically create with each unit of central bank money. It is influenced by the reserve requirements set by the central bank and the behavior of the banking public.

Impact of Reserve Requirements on the Money Multiplier

An increase in the Cash Reserve Ratio (CRR) in the banks means that banks must hold a higher percentage of their deposits as reserves. This reduces their ability to lend and thus, decreases the money multiplier. Similarly, an increase in the Statutory Liquidity Ratio (SLR) mandates banks to keep a higher proportion of their deposits in liquid form, also reducing the money multiplier.

The Role of Banking Habits in the Money Multiplier

An increase in the banking habit of the people leads to more deposits in banks, which enhances the base for the money creation process. With more funds available for lending, the banking system can amplify the initial deposits through continuous lending and redepositing, thereby increasing the money multiplier effect.

Population Growth and the Money Multiplier

Although an increase in the population of a country can lead to more banking activity, it does not have a direct impact on the money multiplier. Instead, the money multiplier is more closely related to the proportion of the population engaging in banking activities and the prevailing regulatory measures.

Finally, the most significant factor affecting the money multiplier is the increase in banking habits among people, as it directly expands the base of funds available for the money creation process within the banking system.

Explanation : 

Appointment and Powers of the RBI Governor

The correct answer is “1 and 3 only” because:

Statement 1: Appointment by the Central Government

The Governor of the Reserve Bank of India (RBI) is indeed appointed by the Central Government. This is in accordance with the provisions of the Reserve Bank of India Act, 1934. The RBI Act specifies the terms of office, conditions of service, and the procedure for appointment of the Governor.

Statement 2: Constitution and the Central Government’s Rights

This statement is incorrect. The Constitution of India does not specifically give the Central Government the right to issue directions to the RBI. The RBI is an autonomous body and operates independently, though it does work in close coordination with the government on various matters of national interest. However, the RBI Act contains provisions that allow the Central Government to give directions to the RBI after consultation with the Governor of the RBI in matters of public interest.

Statement 3: Powers Derived from the RBI Act

The Governor of the RBI does draw his powers from the RBI Act, 1934. The Act outlines the functions, powers, and the role of the RBI Governor.

Therefore, statements 1 and 3 are correct, making “1 and 3 only” the right choice.

Explanation : 

Reserve Bank of India as Lender of Last Resort

The term “lender of last resort” traditionally refers to the role of a central bank in providing liquidity to the banking system when no other institution is willing or able to do so. In the context of India, the central bank is the Reserve Bank of India (RBI). The RBI, as the lender of last resort, primarily fulfills the following function:

Providing Liquidity to Banks During Temporary Crisis

When banks face a temporary liquidity crisis and cannot obtain funds from other sources, they can turn to the RBI for short-term loans. This is crucial in preventing a liquidity shortfall in one bank from cascading into a systemic crisis that affects the entire banking system.

The other options provided in the question are not typically roles of a central bank as a lender of last resort:

Lending to trade and industry bodies when they fail to borrow from other sources – This is not a central bank’s role. While central banks may implement policies that indirectly support the broader economy, they do not directly lend to trade and industry bodies.

Lending to governments to finance budgetary deficits – Central banks may purchase government securities or engage in other monetary policy operations that affect government financing, but this is not the same as acting as a lender of last resort. Financing government deficits is generally done through borrowing from the public or financial institutions, not through last-resort lending.

Therefore, the correct answer is “2 only,” which refers to the RBI’s role in providing liquidity to banks during times of temporary crisis to ensure the stability of the financial system.

Explanation : 

Indian National Army and Its Leaders

Shah Nawaz Khan, Prem Kumar Sehgal, and Gurbaksh Singh Dhillon were significant figures in the Indian National Army (INA), also known as the Azad Hind Fauj. Formed in 1942, the INA was instrumental in the fight for Indian independence from British colonial rule.

The INA was established by Indian nationalists in Southeast Asia during World War II, with the goal of overthrowing British authority in India. It was led by the charismatic freedom fighter Subhas Chandra Bose.

Capture and Trial of INA Officers

After their defeat in the Burma Campaign and other battles against the British Indian Army, these officers were captured. They were subsequently put on trial by the British in 1945, facing charges such as waging war against the King-Emperor and abetment of murder.

Impact of the INA Trials

INA trials, conducted at the Red Fort in Delhi, had a profound impact on the Indian independence movement. The trials generated widespread public support for the accused, who were seen as heroes. The defense committee included prominent leaders like Jawaharlal Nehru, who would become independent India’s first Prime Minister. The public outcry led to the eventual release of the officers, highlighting the trials’ role in the weakening of British rule in India.

Though not acquitted, the legacy of Khan, Sehgal, and Dhillon as INA officers has been cemented in history. Their contributions to the independence movement are remembered, particularly their involvement in the INA and the subsequent trials that helped pave the way for India’s freedom in 1947.

Explanation : 

Analysis of Historical Statements

The first statement indicates that during the reign of Iltutmish, Chengiz Khan reached the Indus River while in pursuit of the fugitive Khwarezm prince. This historical fact is accurate as Genghis Khan did pursue Jalal ad-Din Mingburnu to the Indus around 1221, which coincides with Iltutmish’s rule from 1211 to 1236.

Contrarily, the second statement about Muhammad bin Tughluq is incorrect. Taimur, also known as Timur or Tamerlane, invaded India and reached Multan in 1398, which was after Muhammad bin Tughluq’s reign, which ended in 1351. The ruler at the time of Timur’s invasion was Mahmud Tughluq.

The third statement is also incorrect, as it incorrectly aligns the reign of Deva Raya II of the Vijayanagara Empire with the arrival of Vasco da Gama to the coast of Kerala. Vasco da Gama arrived in 1498, whereas Deva Raya II’s rule ended in 1446, more than half a century earlier.

Explanation : 

Fact – Alpha women of Hampi – The Hindu BusinessLine
ADMINSTRATION-OF-VIAJANAGAR-converted.pdf (ykcollege.ac.in)

Explanation : 

Mughal Empire’s Administrative Hierarchy

In medieval India, particularly during the Mughal Empire, administrative divisions were organized in a hierarchical structure. The correct sequence in ascending order in terms of size is:
1. Paragana
2. Sarkar
3. Suba

Paragana

This was one of the smaller administrative units, typically consisting of a cluster of villages. It was overseen by an official known as an ‘Amil’ or ‘Shiqdar’. Revenue collection and local law and order were managed at this level.

Sarkar

A Sarkar was a larger unit that comprised several Paraganas. It was a sort of district within the Mughal administration, and it was managed by officials appointed by the central government. The Sarkar was responsible for revenue collection, maintaining law and order, and ensuring the implementation of imperial policies within its boundaries.

Suba

This was one of the largest administrative divisions, equivalent to a province. A Suba was governed by a Subedar or a governor who was directly appointed by the emperor. The Subedar had considerable autonomy and was responsible for the administration, finance, and military control of the province. The Suba was further divided into several Sarkars, which were then divided into Paraganas.

So, the correct sequence from smallest to largest is Paragana – Sarkar – Suba, as you have indicated.

Explanation : 

Article 14 of the Constitution of India

Article 14 of the Constitution of India states that “The State shall not deny to any person equality before the law or the equal protection of the laws within the territory of India.” This article embodies the general principles of equality before the law and prohibits discrimination. It ensures that every person is treated equally under the law and that no person or group is given preferential treatment or subjected to arbitrary action by the state.

When a piece of legislation confers on the executive or administrative authority an unguided and uncontrolled discretionary power in the matter of the application of law, it potentially violates Article 14. This is because such unguided discretion can lead to arbitrary action, which is antithetical to the concept of equality before the law. The absence of clear guidelines or principles for the exercise of discretion means that decisions could be made based on personal preferences, biases, or whims, rather than on a consistent and objective application of the law.

Role of the Supreme Court in Upholding Article 14

The Supreme Court of India has, in various judgments, held that laws and executive actions must be fair, just, and reasonable, not arbitrary, and they must pass the test of reasonableness and non-arbitrariness to comply with Article 14. Laws that give authorities unbridled discretion without any checks and balances can be struck down as unconstitutional if they are found to be arbitrary and violating the equality clause.

Therefore, if a law provides for uncontrolled discretionary power without any guiding policy or principles, it could be challenged under Article 14 for being arbitrary and violating the right to equality before the law.

Comparison with Other Constitutional Articles

The other articles mentioned have different purposes:
– Article 28 deals with the freedom as to attendance at religious instruction or religious worship in certain educational institutions.
– Article 32 provides the right to constitutional remedies for the enforcement of Fundamental Rights.
– Article 44 is one of the Directive Principles of State Policy and deals with the Uniform Civil Code for the citizens.

None of these articles are directly related to the issue of unguided and uncontrolled discretionary power in the application of the law. Hence, the correct answer to the question is Article 14.

Explanation : 

Forest Rights Act (FRA) 2006

The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, also known as the Forest Rights Act (FRA), is a pivotal legislation in India that acknowledges the rights of the Scheduled Tribes (STs) and other traditional forest-dwelling communities to the forest resources upon which they have historically depended. This Act is designed to rectify the historical injustices faced by these communities by providing them with legal recognition and protection for their land and resource rights.

Role of the Ministry of Tribal Affairs in Implementing the FRA

The Ministry of Tribal Affairs is the central agency responsible for the effective implementation of the Forest Rights Act at the national level. Its responsibilities include:

• Overseeing the implementation of the Act across India.
• Providing guidance and support to state governments in recognizing and vesting forest rights.
• Developing rules and issuing guidelines to aid the implementation of the Act.
• Monitoring the progress and addressing challenges in the Act’s implementation.
• Coordinating with other relevant ministries, such as the Ministry of Environment, Forest and Climate Change, to ensure that environmental conservation goals are balanced with the objectives of the Act.
• Advocating for the rights of STs and other traditional forest dwellers to ensure their concerns are considered during the implementation process.

The Ministry of Tribal Affairs primarily focuses on the welfare and development of Scheduled Tribes in India. The Forest Rights Act is under its jurisdiction as it directly impacts the rights and livelihoods of these communities. The ministry collaborates with state governments, which handle the on-the-ground implementation of the Act, including processing claims and distributing land titles.

Explanation :-

International Mother Language Day and Language Movement

The correct answer is “2 only.” Here’s the explanation for each statement:

Statement 1: International Mother Language Day by UNESCO

21st February is declared to be the International Mother Language Day by UNESCO, not UNICEF. UNESCO (United Nations Educational, Scientific and Cultural Organization) proclaimed 21st February as International Mother Language Day in November 1999. The day was chosen to commemorate the 1952 Language Movement in Dhaka, Bangladesh, where students and activists protested for the recognition of their mother language, Bangla (Bengali), as one of the state languages of the then Pakistan. This statement is incorrect. Bengali language movement – Wikipedia

Statement 2: The Language Demand in Pakistan’s Constituent Assembly

The demand that Bangla has to be one of the national languages was indeed raised in the Constituent Assembly of Pakistan. When Pakistan was formed in 1947, it had two geographically and culturally separate regions: West Pakistan and East Pakistan (now Bangladesh). The majority of the population in East Pakistan spoke Bangla, and they demanded that it be recognized as one of the national languages alongside Urdu. This demand led to the Language Movement, which ultimately resulted in Bangla being recognized as a state language of Pakistan. This statement is correct.

Therefore, only the second statement is correct.